Penalties for infringements of the AI Act

This article requires EU Member States to establish and enforce penalties for violations of the AI Act, ensuring they are effective, proportionate, and dissuasive. Fines may reach up to 35 million EUR or 7% of a company’s annual turnover for serious infringements, 15 million EUR or 3% for other violations, and 7.5 million EUR or 1% for providing incorrect or misleading information. Penalties must consider the size of the company, with SMEs and startups subject to lower fines. Member States must also report annually to the Commission on issued penalties.